MEDIA RELEASE: PEPNG TO ACQUIRE 50% INTEREST IN PPL 576 FROM TEPNG 2

The Petronas Energy PNG SDN.BHD. (‘PEPNG’) will acquire a 50 percent (50%) interest in the Petroleum Prospecting Licence – 576 (“PPL 576”) from TotalEnergies EP PNG 2 B.V Limited (“TE PNG 2”).

This is according to the Independent Consumer and Competition Commission’s (‘ICCC’) assessment and consideration of PEPNG’s Clearance Application as required under Section 81 of the ICCC Act.

The ICCC Commissioner and Chief Executive Officer, Mr. Paulus Ain said the proposed acquisition of a 50% interest in PPL 576 from TE PNG 2 would not have, or would not be likely to have, the effect of substantially lessening competition in any market (s) in PNG.

“There are no overlapping areas of business activities between PEPNG and TE PNG 2 (including their parent companies), nor any supply relationships or arrangements where the ICCC would assess the likely competitive effects,” Mr. Ain said.

The proposed acquisition is merely a transfer of exploration license interest in PPL 576 from TE PNG 2 to PEPNG, with TE PNG 2’s related company, TotalEnergies EP PNG Limited (TEP PNG), retaining its 50% interest and continuing to operate as the license holder.

Therefore, the level of competition in any markets in the oil and gas sector in PNG would remain the same post-acquisition.

“Additionally, the proposed acquisition would result in the entry of a new player into PNG’s upstream oil and gas sector, which is pro-competitive, as it would create a dual ownership interest in PPL 576,” Mr. Ain added.

“The proposed acquisition would not enhance the applicant’s power in terms of control in the petroleum sector in PNG. Therefore, the ICCC has given Clearance to PEPNG for the proposed acquisition to proceed.”